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UK wage growth slows as employment rate declines
A staff recruitment sign is posted in the window of a restaurant in the Soho district of London, England, on Tuesday, September 7, 2021.
Bloomberg | Bloomberg | Getty Images
The Office for National Statistics said on Tuesday that regular wage growth in the UK between November 2023 and January 2024 was 6.1%. Analysts said the report was unlikely to derail expectations that the Bank of England would start cutting interest rates towards mid-2023. Year.
Year-on-year wage growth slowed to the level seen in the August-October 2022 period, slightly below the 6.2% forecast by economists polled by Reuters.
The wage increase rate, including bonuses, was 5.6%. Wage growth continues to outpace inflation, with total real wages increasing by 1.4%.
Meanwhile, the UK’s employment rate fell by 0.1 points from the same quarter to 75%, although the number of paid employees rose by 15,000 in January.
“The moderation in wage growth in January will still be a little too slow for the Bank of England’s liking, but there are encouraging signs that a more pronounced slowdown is on the horizon and a June interest rate cut is likely,” Paul said. There are,” he said. Dales, chief UK economist at Capital Economics, said in a note:
“The number of job openings fell further from 928,000 in the three months to January to 908,000 in the three months to February, a 32-month low. This suggests that the unemployment rate continues to ease more than it did…coupled with CPI inflation falling below the 2% target in April, this may be enough to prompt a summer rate cut. ” Dales added.
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European Market: Click here for opening call
European markets are set to open higher on Tuesday.
british FTSE100 The index is expected to open 51 points higher at 7,718. dachshund France, up 105 points to 17,847 CAC It is 51 points higher than Italy’s 8,069 points. FTSE MIB It rose 173 points to 33,495, according to IG data.
Revenue comes from Lego and Persimmon. The European statistics release includes the UK unemployment rate for January.
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